Nani Afrida, The Jakarta Post, Jakarta | Mon, 12/21/2009 9:05 PM
State railway company PT Kereta Api Indonesia (KAI) expects to net between 10 and 15 percent growth in revenue next year, banking on higher tariffs for its economy class, says an executive.
The company has proposed a 50 percent tariff rise to be effective by July next year, in anticipation of the government rejecting its request of additional state funds to help finance its public service obligation (PSO) program, which requires it to provide cheap transportation to as many people as possible.
That would eventually boost the company’s revenue, KAI president director Ignasius Jonan said Monday at the State Ministry for State Enterprises.
“This year, our revenue is expected to reach Rp 6 trillion [about US$620 million], which was far higher than last year,” Ignasius told reporters.
In 2008, KAI recorded Rp 4.32 trillion in revenue.
Jonan said the company had so far booked Rp 200 billion in net profits.
“The net profits this year have exceeded our budget target,” he said, adding that in 2008 KAI suffered Rp 83 billion in losses.
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